Although Germany fully supported the transition to green energy, the German economy is now showing signs of severe decline as the long-term energy crisis comes to an end.
The country is aim Following former Chancellor Angela Merkel’s lead, the country aims to reach “net-zero” emissions by 2050, relying on sources such as wind, solar and hydrogen fuel for energy demand and supply. decided In 2011, the country’s nuclear power plants were finally shut down.Despite extensive regulation and spending by the German government to usher in a green transition, the country not on track However, the decision to rely on intermittent green energy generation is contributing to the ongoing energy crisis that is paralyzing the economy.
Diana Furchgott-Ross, director of the Heritage Foundation’s Center for Energy, Climate and Environment, told the Daily Caller News Foundation that “hollowing the economy will not benefit the German people and will not help climate change.” he said. She said: “Emissions are not being reduced because manufacturing has been moved to other countries that use dirtier energy, such as China and India. Germany’s economy is in a slump, and its people have no jobs like before. and economic opportunities.” (Related article: “Busy with a popular uprising”: German minister makes dire remarks about energy crisis)
Germany bans continued nuclear power generation despite energy crisis https://t.co/dYUfJrJhQK
— Daily Caller (@DailyCaller) September 8, 2022
Germany finally closed its last nuclear power plant in April 2023. A few months later, the German government announced that it would bring on coal-fired power plants to ensure sufficient supply through the winter.
There are many signs of Germany’s economic decline, perhaps the most notable being the fact that it grew by less than 2% in 2022, but contracted in 2023. according to Go to Euronews. The country faces high borrowing costs and inflationary pressures that plague many Western economies, but persistent energy inflation remains the main driver of the country’s economic downturn for both consumers and businesses. It becomes. according to to Reuters.
In the third quarter of 2023, electricity generation in Germany’s power sector was 20% lower than in the same period in 2022. according to Go to GMK Center. On the demand side, Germany’s 2023 energy consumption was about 8% lower than his 2022 level and about 25% lower than his 1990 energy consumption. according to To clean energy wire.
The country’s electricity consumer price index is nearly 50% higher in December 2023 than in January 2021. according to On data from Eurostat. Managers of industrial enterprises are caveat While many companies have begun to relocate their operations outside Germany, high energy costs may make it impossible to continue to exist in Germany. according to To Politico.
Germany’s November 2023 Manufacturing Purchasing Managers’ Index (PMI) is a “measure of overall business conditions based on measurements of new orders, output, employment, supplier delivery times, and purchased inventory” and is a measure of the industry’s Executives across the board are clearly pessimistic about the future prospects and industry vitality; according to To S&P Global. Given Germany’s reputation as Europe’s economic powerhouse, it is difficult to underestimate the potential impact of a decline in German manufacturing. have great power This is largely due to the strength of its manufacturing industry, which since 1991 has typically provided about 20% of the country’s annual gross domestic product. according to Based on World Bank data analyzed by Macrotrends.
German manufacturers aren’t the only ones feeling the pinch. German farmers recently staged a week-long wave of protests across the country, expressing anger at the government’s proposal to close huge budget shortfalls by scrapping subsidies to keep businesses open.
The budget gap particularly threatens climate-related initiatives, many of which still require government subsidies to have any chance of success, even after governments have already spent hundreds of billions of euros on the green agenda. . according to In the New York Times.
On the other hand, residential real estate prices in this country have fallen sharply over the past year. according to to Reuters. Residential property prices fell 10% year-on-year in the third quarter of 2023, a development that Reuters described as a “bleak sign” for the German economy.
Germany’s energy crisis has been brewing for years, but the ongoing war with Russia and Ukraine has accelerated the crisis in Germany. Before the war began, Germany was heeded by warnings (including those from former President Donald Trump) that relying on Russian exports would give Russian President Vladimir Putin greater geopolitical influence over Europe. In particular, it has become dependent on cheap Russian natural gas.
The conflict continues to rage, and it remains unclear when it will end and what the terms will be for ending the war. One such challenge is whether Russia and Ukraine can renegotiate a natural gas transportation agreement to replace the current one, which expires in 2024. according to Go to Bloomberg News.
According to Bloomberg, the current Russia-Ukraine transit agreement allows Russian gas to flow through Ukraine to other European countries in exchange for Russia paying a fee to Ukraine. Without a new deal, Germany and Western Europe could be at risk of falling into a supply crunch again, with German Economics and Energy Minister Robert Haveck saying in June that Germany needed “no certainty about how things will turn out.” There is no such scenario,” he warned. Without preparation for further supply disruptions, the economy will deteriorate.
A poor economic outlook and energy crisis are also rattling German politics. The country’s leading right-wing populist party, Alternative for Germany (AfD), has more than doubled in popularity since the Russian invasion began. according to Poll data compiled by Politico.about 80% A majority of Germans are dissatisfied with the current coalition government’s performance, and more than half want elections to be held by 2025, as currently scheduled. according to Go to Bloomberg News.
Germany’s Federal Ministry for Economic Affairs and Climate Change did not respond to a request for comment.
All content produced by the Daily Caller News Foundation, an independent, nonpartisan news distribution service, is available free of charge to legitimate news publishers with large audiences. All republished articles must include our logo, reporter byline, and DCNF affiliation. If you have any questions about our guidelines or our partnership, please contact us at licensing@dailycallernewsfoundation.org.